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Broadcom Draws Fresh Price-Target Hikes as AI Networking Chips Enter Production

Analysts see an accelerating AI data-center ramp powered by Broadcom’s custom silicon and high-bandwidth connectivity.

Overview

  • Broadcom confirmed its Tomahawk 6 switch is in full production and shipping, and it announced the 3nm Taurus BCM83640 optical PAM‑4 DSP supporting 1.6‑terabit transceivers that double throughput per lane.
  • Following record fiscal Q1 results of $19.3 billion in revenue with a 68% EBITDA margin, the company guided for approximately $22 billion in Q2 revenue with adjusted EBITDA near 68%.
  • Sell-side firms including Citi, JPMorgan, Argus, Rosenblatt, Baird, and Morgan Stanley raised targets in early March, with ratings clustered at Buy/Overweight and targets cited up to $630.
  • Coverage tallied 29 analysts with 27 Buys and 2 Holds and a reported median one‑year price target around $467.68 as of March 11.
  • CEO Hock Tan outlined a path to AI chip revenue topping $100 billion by fiscal 2027, while commentary continues to flag high leverage near $62 billion and concentrated hyperscaler exposure as risks.